Fri. May 29th, 2020

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ICICI Prudential Value Discovery Fund is Ideal For Large Yields

2 min read
ICICI Prudential

It is a multi-cap fund. ICICI Prudential Value Discovery Funds are diversified funds that invest in stock market capitalization. That is, his portfolio includes large-cap, small-cap, and mid-cap stocks. They are relatively less volatile and are not perfect for such aggressive investors.

It is the best fund for long term investment. It is seen in all the ups and downs of the market. It is a well-diversified fund that can adjust according to the situation on the market. Stay longer in ICICI Prudential Value Discovery Funds. You will benefit. 

What is the investment strategy in this scheme?

  • The scheme aims primarily to maximize returns by investing in dividend income and capital appreciation in well-diversified value stock portfolios.
  • It focuses on businesses with reasonable growth potential and looks good from a financial ratio and relative market capitalization standpoint.
  • The ICICI Prudential Value Discovery Fund Scheme gave returns of 22.7% and 18.7%, respectively. If you compare it to the same category, Large-Cap has given 15.8% and 10.9% returns during the same period.
  • It consistently provided excellent returns to investors. 

Basic Details of the scheme

  • Fund House- ICICI Prudential Mutual Fund
  • Launch Date- 16-Aug-2004
  • Return Since Launch- 18.58%
  • Benchmark- Nifty 500 Value 50 TRI
  • Riskometer- Moderately High
  • Type- Open-ended
  • Assets- ₹ 14,729 Cr (As on 31-Jan-2020)
  • Expense- 1.81 %( As on 31-Jan-2020)
  • Risk Grade- Below Average
  • Return Grade- Below Average
  • Turnover- 25.00% 

Why ICICI Prudential Value Discovery Fund is best for long term investment

In this scheme, even during the bull phase, the funds may be slightly weaker than the other schemes of the category and will do well during dangerous market conditions. To bear the fruits of returns, you will keep investing for a long period. Do not panic in the short term based on volatility. ICICI Prudential Value Discovery fund is outstanding for investors who know the value and value of the investment.

The fund may be in a position that is not currently attractive and, thus, trades below intrinsic value. That will keep it from searching for more real value in the long run. Typically, this takes time, and shortly, yields can be lower than other stocks that invest in stocks and growth stocks.

The scheme has excelled over the years but has been average as it has crossed the AUM of around Rs 15,000 crore. It is usually challenging to allocate funds with high AUM.

Dividends paid by mutual fund schemes are taxed at the rate of 10% (actually 11.648%, including surcharge and cess). Although this tax is not paid directly to the investor, it is deducted from the dividend revenue before it is paid to the investor.

Note: Currently, this scheme is one of the best in the diversified category. So invest 3 to 5 years, this will help you in earning yields. Equity funds should always be considered from a long-term viewpoint.